It depends on what you are asking. I've dealt with Indian-ran web hosts with servers in the US and I must say that you get a good lot of very professional businesses but there are bad hats around. Pretty much no difference from any other countries. The good thing is that the indian cost of living is lower than in the US and that shows with the prices and professionalism you get from Indian web hosts. I am sure that many technical and tech support of international companies have shifted to India for that very reason. India is a huge and upcoming country and I am sure that if you are planning to start a server hosting business in India, you can with some effort capture that growing market.
Do you mean hosting in India? I have seen hosting with VSNL. It costs a bomb. Hosting business is not lucrative enough in India (right now)
If you are looking to start a hosting company based in India then i think it is not a good time to do so as for hosting you will need high speed bandwidth which costs more then in US or UK. So i'll say it will be nice to delay your plans for next 1-2 years and hope that these prices slashes.
bandwidth costs are the only big limitation in india now. The Indian Government is doing a lot to improve this and has got good success in a short time span . waiting two years to get cheap bandwidth is suitable
Bandwidth costs in India is a big disadvantage. If you check BSNL's website for co-location hosting, you will get an idea of how high the costs are. Also I don't think still high speed bandwidth(comparing to other countries) is still not available in India.
Not possible to keep server in Indian at this time. None ISP will provide 50+ Mbps upload speed at afffordable rate.
Did anyone took power supply into consideration. take that as you need to run the data center mostly on gensets ,since power supply is a huge problem. digiguy